Tough times good sign for rent price

A fall in Bunbury rental prices is due to a number of factors including job losses and a declining sales market, a number of real estate agents believe.

Greater Bunbury’s median rental price dropped to $340 for the March quarter, according to Real Estate Institute of WA data, and supply is up almost 23 per cent during the past year.

Vacancy rates have almost doubled compared to the same time last year.

Summit Realty South West investment operations manager Shawn Murtha said she had noticed an increase in the number of people experiencing financial hardship and believed job losses and family breakdowns were two factors.

“Some existing tenants that have otherwise been excellent tenants in the past are simply stuck for a way to pay their rent, and are forced to break leases as they simply cannot afford to continue at the property,” she said.

“Those renters that are looking seriously for a property are more than willing to ask for a reduction in price, or see what an owner might be willing to offer them to get them across the line.”

REIWA Bunbury chairman Drew Cary agreed job losses were having a flow-on effect to the rental market, highlighting recent examples of industries in Collie cutting staff.

“We have seen some of the transient workforce lose employment and move away,” he said.

“Even if it is only 100 families, it does not take much to shift from undersupply to oversupply.

“The median rents are starting to feel the bite of the oversupply.

“If you are a tenant, it is a good time to be in the market.”

Barr and Standley principal Jay Standley believed Australia’s low interest rates were also contributing to reduced demand, as possible tenants were considering moving away from rentals.

“If you look at the sales market and rental market and if one is going well, the other is going well,” he said.

“Most people would agree we’ve been in a declining market for a few years.”